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Are Franchise Agreements Negotiable?

Yes.

When prospective franchisees are looking to purchase a franchise, many times the question “Can I negotiate the franchise agreement?” comes up. Very often, people are told that they cannot negotiate the franchise agreement. So, they may not even bother reviewing the FDD and just blindly sign the franchise agreement. Well, what some people don’t know is that yes, franchise agreements are negotiable.

You will not be able to change the majority of the documents because franchisors do have certain restrictions. But, an experienced franchise lawyer will know what those restrictions are beforehand and will strategically make modifications in your favor including:

  • Limiting your liability;
  • Protecting territory rights;
  • Ensuring your franchise rights for the future; and
  • Clarifying certain provisions.

The real goal is to build a business. So, these modifications will ensure you that your rights are established and you are protected.

Read “An Entrepreneurs Guide to Buying a Business or Franchise” for further insights about Franchise Agreements.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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